FAST Price Forecast Based on Dividend Discount Model

For dividend yielding stocks, the Dividend Discount Model (DDM) is a common valuation tool; it attempts to extrapolate a fair share price based primarily on the dividend the stock provides relative to a number of other quantiative aspects of its business. In the case of FAST, the dividend discount model StockNews created for the company implies a positive return of 1.13%. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Fastenal Co are:

• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Industrials sector, Fastenal Co's expected return of 1.13% is higher than 83.94% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, FAST has a discount rate lower than 83.94% of them (a lower discount rate is associated with lower risk).
• Beta, which compares volatilty of an individual stock to that of the S&P 500, is lower for Fastenal Co than it is for 83.94% of other dividend issuers in the Industrials sector.

FAST Dividends vs. Peers